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City must ‘use or lose’ housing funds

Evanston’s City Council tonight is scheduled to shift more federal funds into its planned neighborhood stabilization project.

The city received an $18 million federal grant in December for the stabilization program which is designed to rehabilitate 100 foreclosed homes in two Evanston census tracts.

Evanston’s City Council tonight is scheduled to shift more federal funds into its planned neighborhood stabilization project.

The city received an $18 million federal grant in December for the stabilization program which is designed to rehabilitate 100 foreclosed homes in two Evanston census tracts.

Tonight the aldermen are expected to approve awarding $600,000 in federal HOME funds to Brinshore Development LLC, the city’s partner in the neighborhood stabilization program grant.

The $600,000 is part of an allocation of HOME program funds made in 2008 that the federal Department of Housing and Urban Development has set a deadline of the end of this month for the city to commit to a project or risk losing the money.

City officials say that with the collapse of the housing and credit markets beginning in 2008 there were fewer opportunities to develop affordable and market-rate housing. As a result the city received fewer requests to use the HOME fund allocation than had been expected.

Over several years the city had received nearly $7 million in HOME funds that needed to be allocated by the end of this month. All but the $600,000 had previously been committed to a variety of projects.

 

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